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The Irish Tax Monitor February 2021
This Month's Roundtable

The Questions

Question 1: The Minister for Finance, Paschal Donohoe T.D., on Thursday January 14th published an Update to Ireland’s 2018 Corporation Tax Roadmap, 'Ireland’s Corporation Tax Roadmap January 2021 Update' outlining further actions that Ireland will be taking as part of international tax reform efforts.

For reference see here.

Can you assess the overall value of the Roadmap, and the nature of its commitments as a useful working document on Ireland’s corporation tax position in the world?

Question 2: Under the Action Plan Commitments (listed in the above), which do you think are most significant?

Question 3: A Review of tax treaties is also underway internationally in the context of the global assessment of corporation tax, such as BEPS and Globe. How extensive is Ireland’s international tax treaty network and how important is it to Ireland’s competitiveness and attraction as a jurisdiction. Do you think further progress in achieving a widening of this is possible in the coming years?

Question 4: Perrigo has now indicated that it will not appeal the Supreme Court ruling on its tax case, covered in recent issues of the Irish Tax Monitor but will now challenge the Revenue’s position to the Tax Appeals Commissioners. Can you comment on this development?

Question 5: In another disputed case in January the Revenue has challenged a ruling by the Tax Appeals Commission (TAC) that a €587 million tax assessment on AbbVie’s acquisition of Allergan, by Revenue acting on a 2020 Finance Bill measure levying a 1% stamp duty on share cancellations which were previously exempt. What are your comments on this?

Tax and Covid-19.

Question 6: The tax function in companies has played an important part in overall financial planning, with, in a considerable number of cases, tax becoming an enhanced part of the cash flow management process. With the second lockdown extending perhaps the earlier hoped-horizons for the duration of the pandemic, what lessons might corporate tax managers take from the experiences of 2020-21?

Question 7:. On December 23rd 2020 the Department of Finance announced a Public Consultation on the workings of the Employment Investment Incentive (EII). What issues do you believe could be addressed in the consultation process?

This Month's Roundtable - The Answers

Ireland’s updated Corporation Tax Roadmap is welcomed by Contributors

The Contributors to this edition of the Irish Tax Monitor give a broad welcome to the Government’s review and update of Ireland’s 2018 Corporation Tax Roadmap, 'Ireland’s Corporation Tax Roadmap January 2021 Update', which reviews the progress achieved on the Corporation tax front. The Roadmap reviews the impressive and lengthening measures that have been introduced to the tax code in the years since the first ‘Roadmap’ in 2018, and indeed before, dating back to former Finance Minister Michael Noonan’s memorable declaration in the 2013 Budget that Ireland aspires to “play fair and play to win”, referenced again, in this month’s Roundtable, by one of our contributors Deloitte’s Joanne Fox (pp 44-45). Also in the Roundtable this month is an overview of Ireland’s tax treaty network, which has been separately identified in the new Ireland for Finance strategy Action Plan, 2021, published by the Department of Finance on February 11th. Court news of major significance is also covered in responses on Perrigo- Tysabri, and on the TAC’ s determination regarding retrospectivity of tax assessments by Revenue in relation to the scheme of arrangement regarding Abbvie’s acquisition of Allergan (page 46). The ongoing implications of Covid-19 in the tax and financial management spheres, and the December 23rd 2020 announcement by the Department of Finance of a Public Consultation on the workings of the Employment Investment Incentive (EII) are also examined by the Panel.

In This Month's Issue

Ireland’s lodestar for Corporation Tax is reaffirmed

The Contributors to this edition of the Irish Tax Monitor give a positive welcome to the Government’s landmark strategy document on Irish corporation tax policy, in the review and update of the 2018 Corporation Tax Roadmap, entitled 'Ireland’s Corporation Tax Roadmap January 2021 Update' which was published on Thursday January 14th. Ireland’s Corporation tax system is central to the health of the economy, and while recent economic assessments by credit rating agencies, and by the European Union, continue to raise the question of uncertainty over the future yield from corporation tax there is no reason to believe that a decline in its importance as a contribution to Irish economic welfare is inevitable. And that is very important, as the same EU Economic review1 of economic performance across Europe in 2020 shows that Ireland was the only country in Europe not to suffer a decline in its national income.

Analysis - Special Feature

Ireland’s Corporation Tax Roadmap

On 14 January 2021, The Minister for Finance, Paschal Donohoe, published an update to Ireland’s 2018 Corporation Tax Roadmap (the Update).